Electricity Act 2003

The provisions of the Electricity Act 2003 are intended to introduce competition in every link of the power supply chain in order to enhance efficiency and reduce costs. However, certain controversial provisions in the Act need to be clarified. For instance, the provisions on open access, surcharges and cross-subsidies could lead to many interpretations and cause legal tangles. Regulatory commissions must also adopt uniform procedures for tariff-fixing so that uncertainty is minimised and investments are encouraged. Simple remedies, by means of clarifications and norm-fixing are required, some of which are offered in this paper.